Gold and silver prices have dipped slightly in midday trading, remaining near their multi-month lows. Technical selling is driving the decline, as bearish near-term charts dominate the market. The correction in the US dollar index and US Treasury yields has not provided support for the precious metals bulls. December gold is down $3.00 at $1,838.30, while December silver is down $0.242 at $21.14.
Traders are paying close attention to the upcoming US jobs report from the Labor Department, with today’s ADP National Employment Report falling short of expectations. The bond market is hopeful that this indicates a cooling US economy. Additionally, risk appetite has decreased following the ousting of the US Speaker of the House of Representatives, casting uncertainty over funding the government. The bond market sell-off is also causing concerns, as investors are worried about the prospect of higher interest rates from the Federal Reserve.
Asian and European stocks were mixed overnight, but US stock indexes saw a rebound after hitting four-month lows earlier this week. The US dollar weakened, crude oil prices plummeted, and the US Treasury 10-year note yield hit a 16-year high. Technically, December gold and silver futures prices are currently at multi-month lows. However, the market is oversold and due for a corrective bounce. Resistance for gold is seen at $1,850.00, while silver has resistance at $21.57. Copper prices also hit a 10-month low, with resistance at 364.80 cents.
